We reformulate the Verhulst-Lotka-Volterra model of natural resource extraction under the alternative assumptions of Cournot behaviour and perfect competition, to revisit the tragedy of commons vs the possibility of sustainable harvesting. We stress the different impact of demand elasticity on...

Profit-seeking firms can be induced to internalise the environmental damages caused by production via several policy instruments, a widely used one being emission permits. In a very influential paper, Laffont and Tirole (J Public Econ 62:127-140, 1996) point out that the allocation of pollution...

This paper investigates the impact of free trade on welfare in a two-country world modelled as an international Hotelling duopoly with quadratic transport costs and asymmetric countries, where a negative environmental externality is associated with the consumption of the good produced in the...